The following is a guest post by Greg Waisman, Co-founder and COO
There has been a lot of talk about Web3 in recent years. The promises of a decentralized internet where users have control over their money and data have sparked excitement among tech-savvy communities around the world.
Some projections predict that the Web3 market will reach astonishing size $177.58 billion by 2033. However, Despite this growth, Web3 adoption in the real world remains low.
This begs the question: what is holding this space back?
Web3 has broken away from its original course
Web3’s original idea was revolutionary in its vision: putting control back in the hands of users, eliminating middlemen, and creating a digital world based on interoperability, permissionless systems, and self-control. Users would be able to manage their assets independently and benefit directly from their data, rather than allowing third parties to potentially exploit their users.
But while there has been some progress in this area – think decentralized applications that allow users to play games or wager money without having to worry about intermediaries – Web3 has not yet penetrated the mainstream. The promise is there, but in my opinion the implementation is lagging behind.
Too complex to understand, not good enough to adopt
One of the biggest barriers to Web3 adoption is its complexity. For the uninitiated, cryptocurrencies and Web3 platforms are difficult to understand and even more difficult to use. To the average user, they remain a confusing and inaccessible thing that simply exists ‘somewhere out there’. And this is a major hurdle to adoption in everyday life. Unless you’re already part of the crypto world, joining in feels like trying to navigate a maze.
For example, consider the growing buzz around Layer 2 solutions (L2s) such as Base and Arbitrum. This technology is designed to improve the scalability and efficiency of blockchain networks, making interactions faster and cheaper, addressing some of the common pain points associated with Web3. However, despite the benefits they promise, most users have no idea why L2s exist or what makes them stand out.
The terminology alone – mainnet, L2s, gas rates – can leave non-crypto natives scratching their heads and not understanding why they should care about all these different layers or how to deal with them. This lack of understanding and obvious accessibility keeps many potential users away.
This doesn’t help because Web3’s reputation has taken some hits, largely because the space is often associated with scams, hacks, and get-rich-quick schemes. Furthermore, the idea of self-custody, where users are responsible for their own belongings, is daunting to most people. Traditional banking has safety nets and customer support, which feel safer and easier for many.
The Web3 world, on the other hand, is still seen as the risky Wild West. Technological innovations and changes are happening so quickly that even those who work in space often struggle to keep up. Naturally, this adds an extra layer of complexity that users may struggle with.
Finally, Web3 also suffers from a limited number of use cases. Besides crypto trading and speculative activities, users can’t do much with their assets, and that’s not enough to attract a mainstream audience. To achieve widespread adoption, the industry must offer practical and engaging applications that people can use every day.
So can Web3 be saved?
To break out of its niche and enter the mainstream, Web3 must refocus on what made it so exciting in the first place: use cases built with interoperability, self-management, and permissionless access in mind. But these concepts need to be integrated into platforms in a way that users are already familiar with.
Imagine you’re a neobank customer and it suddenly starts offering higher returns through a built-in Web3 wallet. Or if non-crypto apps start offering smart wallet functionality. This makes the benefits of Web3 much more available to the average person.
Focusing on user experience and ease of access is central. At this point, Web3 is still clunky and complicated. To appeal to a wider audience, it needs to become as intuitive as the apps we already use every day. This means better interfaces, clearer explanations and simpler onboarding processes. Education and marketing will also be key in demystifying Web3 while showing people why it’s worth it.
Web3’s potential is enormous, but is hampered by complexity and a lack of practical use cases. For Web3 to really take off, the industry must integrate with existing Web2 platforms and focus on creating real value for everyday users.